The Department of Telecommunications (DoT) has finalised the timeline for the merger of Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL). DoT expects to complete the consultation process for the merger with the unions of BSNL and MTNL by March 2015 and inter-ministerial consultation by April 2015. The department intends to get the cabinet’s approval for the merger by June 2015.

Further, DoT is planning to hive-off BSNL’s mobile towers into a wholly-owned entity and intends to conclude the monetisation of property holdings by BSNL and MTNL before December 2014. It has been reported that MTNL's land and building assets have an estimated value of over Rs 30 billion while valuation of BSNL’s assets is yet to be done.

Also, DoT is planning to provide financial assistance to MTNL for its minimum alternate tax liabilities worth Rs 7.8 billion and has further proposed to fund the operator’s capex needs to expand telecom networks.